Question

The adjustments required in cash flow from operations to

Q: Answer-The adjustments required in cash flow from operations to find free cash flow to the firm are:

Free cash flow to the firm will be equal to cash flow from operations and add back to it tax-adjusted interest expenses and deduct fixed capital investment. Working capital investments are already adjusted in CFO. Net borrowings matter for Free cash flow to equity.

find free cash flow to the firm are:

A Add non-cash charges and subtract investments (both fixed and working capital)

B Add net borrowings

C Add net borrowings and subtract CAPEX (Capital expenditure)

D Add after-tax interest expense and subtract fixed capital investment

E None of the above

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The adjustments required in cash flow from operations to

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